There is no skill-gap!

There is nothing like unemployable graduates or sub-par man-power.

Contrary to popular opinion, I have maintained that there is no “skill gap” anywhere in the world including in India.

Skill gap is artificial construct, a lame excuse. Anyone can be skilled. If they see profits or opportunity, companies will train Grade-4 dropout to code, manufacture or whatever we think is “high-skilled”.

Companies influence skill development in two main ways.

First, by paying higher for skills they desire. This process creates a longer feedback loop for skill development. Depending upon the depth of the skills, universities invest in creating technical courses and attracting students to these courses. This creates the talent that is absorbed by the industry. Companies often co-invest with universities and they often allow their own employees to teach at these universities to ensure training aligns with industry requirements.

For quicker results, companies pick up adjacent skilled people and train them. This requires investments in training - seeking out managers who can train people repeatedly while on the job. After skilling companies need to offer higher wages to these newly skilled employees. Some employees adapt these skills to create separate businesses themselves.

In fact most famous companies came from skills created like above

• Amancio Ortega (Inditex/Zara): With no education beyond age 13, he started as a shop hand in a shirt factory, mastering garment production and supply chains through daily hands-on work. He then founded Zara, building the world’s largest fashion retailer by creating fast, affordable style for millions.

• Ralph Lauren (Ralph Lauren Corporation): Lacking any college degree, he learned menswear trends and customer preferences on the job as a sales clerk at Brooks Brothers. He launched his own tie line, scaling it into a billion-dollar global apparel empire that redefined American luxury.

• Zhou Qunfei (Lens Technology): Leaving school at 16 with minimal education, she mastered precision glass manufacturing by polishing lenses in a watch factory. She started Lens Technology in a garage, becoming the top touchscreen supplier for Apple and Samsung, worth billions.

• Henry Ford (Ford Motor Company): Formal schooling ended after eighth grade; he learned engineering and assembly through machinist apprenticeships and shop-floor tinkering. He founded Ford, inventing the moving assembly line to mass-produce affordable cars, transforming global industry.

• Colonel Harland Sanders (KFC): Education stopped at eighth grade; he perfected his fried chicken recipe through decades of on-the-job cooking in restaurants and steakhouses. At 65, he franchised KFC, building a $27 billion fast-food empire from a single recipe.

• Joyce Hall (Hallmark Cards): Dropping out at 14 with no higher education, he learned greeting card design and sales through door-to-door vending and bookstore work. He founded Hallmark, growing it into the world’s largest card company with $5 billion in annual revenue.

• Ingvar Kamprad (IKEA): Leaving school at 17 without further qualifications, he honed sales and flat-pack design skills selling matches and furniture door-to-door. He founded IKEA, revolutionizing affordable home goods into a $50 billion global retail giant.

It is all about demand!

When companies do not see demand, they come up with such plethora of excuses to not enter the fray. But when push comes to shove, they can and will compete AND win too.

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Here is news about US skilling people for manufacturing.

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